Coal supply issues, power supply and supply chain impact in India

An article in the New York Times (April 19,2012) describes coal supply difficulties in India due to price controls on power, rising prices of Indonesian coal and lack of incentives to use natural gas. The impact – erratic power supplies that cause production to adjust to accomodate, thus increasing costs, or incur the higher costs for use of diesel fueled generators. The associated impact is blamed for a drop in India’s growth rates from 10% to 7%. Should Indian manufacturers accept power generated from generators as their stable source and thus increase their energy costs for production ? Should coal supplies that are imported be subsidized by the Indian government to guarantee power supply – an infrastructure role similar to transport ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , , , . Bookmark the permalink.

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